Shoppers are seen at Lotte Department Store's Centum City branch in Busan, Sunday. Yonhap
Park, an office worker in his 50s living in Seoul's Dongjak District, purchased a Tiffany bracelet worth more than 9 million won ($5,900) for his wife at a department store in May after cashing in gains from stock investments.
"I sold part of my holdings in exchange-traded funds tracking the KOSPI and also took profits from Samsung Electronics shares," he said. "My wife was always concerned about me investing in stocks. But with the market performing well these days, she has become more supportive."
Park is among a growing number of consumers capitalizing on the KOSPI rally, helping drive strong sales at department stores.
According to industry data, Wednesday, the country's three major department store operators posted record first-quarter earnings this year.
Lotte Department Store reported an operating profit of 191.2 billion won in the January-March period, up 47.1 percent from a year earlier. Shinsegae Department Store posted an operating profit of 141 billion won, a 30.7 percent increase on-year. Hyundai Department Store's operating profit rose 39.7 percent to 135.8 billion won.
Luxury goods were a key growth driver.
Lotte's luxury sales in the first quarter rose about 30 percent from a year earlier, while Shinsegae reported a 29.8 percent increase over the same period.
The spending spree comes as the benchmark KOSPI nears the 9,000-point level for the first time, having gained nearly 90 percent this year on the back of a semiconductor-led rally driven by strong global artificial intelligence demand.
Park Sang-jun, an analyst at Kiwoom Securities, said department store sales have historically surged during periods of strong stock market rallies.
Source: Korea Times News
